The Virginia General Assembly enacted a bill that will change how tax applies to shop supplies for automobile repair shops. Currently, shops must pay tax on all shop supplies for automobile repairs. The law change will allow shops to purchase certain supplies tax exempt if the shops will charge customers separately for the supplies. The shops will have to collect tax on any separately stated charge billed to customers for the supplies.

This is a change in long-standing policy, and the state will issue more guidance before the law change takes effect.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.